General Assembly Raised Bill No. 5285
February Session, 2012 LCO No. 1126
*01126_______HS_*
Referred to Committee on Human Services
Introduced by:
(HS)
General Assembly
Raised Bill No. 5285
February Session, 2012
LCO No. 1126
*01126_______HS_*
Referred to Committee on Human Services
Introduced by:
(HS)
AN ACT ADJUSTING COMMUNITY HEALTH CENTER RATES FOR CAPITAL INVESTMENTS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subsection (a) of section 17b-349 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
(a) The rates paid by the state to community health centers and free-standing medical clinics participating in the Medicaid program may be adjusted annually on the basis of the cost reports submitted to the Commissioner of Social Services, except that rates effective July 1, 1989, shall remain in effect through June 30, 1990. (1) Beginning with the rate period commencing on October 1, 2012, and ending September 30, 2013, the Commissioner of Social Services may add, if applicable, a capital cost rate adjustment to a community health center's rates equal to the center's actual or projected year-to-year increase in total allowable depreciation and interest expenses associated with capital costs divided by projected service visit volume. For the purposes of this section, capital costs are expenditures for land or building purchases, fixed assets, movable equipment, capitalized financing fees and capitalized construction period interest. Such capital cost rate adjustment shall be subject to retroactive revision based on actual allowable depreciation and interest expenses or actual service visit volume for the rate period. (2) The commissioner shall establish separate capital cost rate adjustments for each Medicaid service provided by a center. (3) The commissioner shall not grant a capital cost rate adjustment to a community health center for any depreciation or interest expenses associated with capital costs that were disapproved by the federal Department of Health and Human Services, the Office of Health Care Access within the Department of Public Health, or another federal or state government agency with capital expenditure approval authority related to health care services. (4) The commissioner may allow actual debt service in lieu of allowable depreciation and interest expenses associated with capital items funded with a debt obligation, provided debt service amounts are deemed reasonable in consideration of the interest rate and other loan terms.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2012 17b-349(a)
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2012
17b-349(a)
Statement of Purpose:
To adjust rates paid by the state to community health centers for capital investments made by the centers.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]